SMEs were the main drivers of economic growth between 2004 and 2006

The non-financial business economy of the EU (NACE Rev. 1.1 sections C to I and K) witnessed quite substantial growth between 2004 and 2006. Excluding ‘mining and quarrying’ (section C), value added at factor cost rose by 11.6% to reach 5.6 trillion euros. The number of persons employed rose by 4.3% and in 2006 was close to 130 million. Small and medium-sized enterprises (SMEs), which are defined as firms employing between 1 and 249 persons, are often referred to as the backbone of the European economy, providing a significant source of jobs and economic growth. They were indeed the main contributor to growth between 2004 and 2006 as this publication shows.